We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Does the General Sales Tax Impact the Personal Consumption Expenditure - Research Paper Example

Comments (0)
Summary
Does the General Sales Tax Affect the Personal Consumption Expenditure? Instructor: Abstract Taxes form a source of revenue to the state. This revenue is used to stir economic growth and development of the country…
Download full paper
GRAB THE BEST PAPER
Does the General Sales Tax Impact the Personal Consumption Expenditure
Read TextPreview

Extract of sample
Does the General Sales Tax Impact the Personal Consumption Expenditure

Download file to see previous pages... This paper seeks to study the relationship between sales tax and individual consumer expenditure and saving. Table of Contents Table of Contents 2 1.0. Introduction 1Sales tax is part of consumption tax, tax on imposed on spending on goods or services in various states. Sales tax is usually imposed to buyers during the purchasing of goods or services. The sellers are the one who collect the tax. Tax rates vary from one state to another. In United States, the sales tax has been increasing drastically since 1997 and this has led to rise of prices of both services and commodities. The people who are affected indirectly by sales tax are the buyers. Their expenses rise per month forcing them to draw narrow budgets. This is the same in the whole world and the economies of many nations are going down. What it exported or imported is also highly taxed. Sales tax is different from value added tax because it is only imposed once at the retail level. Different states in United States have different tax rates. There are some jurisdictions in these states that determine the tax rates to be imposed on various goods and services. Goods for manufacture or resale are usually exempted from sales tax. Some other jurisdictions also exempt sales tax on foods sold in grocery shops, agricultural supplies and prescription medications. Sales tax greatly affects the spending of consumers, changes their consumption behavior and marketplace at the household level. 2.0. Literature Review There are many researches that have been done to show how the increase in sales tax affects personal consumption expenditure. Most of the results got from these researches have showed negative impacts on personal consumption expenditure. As Kevin 2001 puts it, this has been the case in the 2United States of America and the rest of the world. In a case study conducted in California in 2007, it was revealed that the best sales tax rate was 7.25%. This was a rapid increase from 6.6% in 2004 while in 1990s it was less than five percent. Most of this was taxed because of transport expenditures that were incurred during transportation of the goods or services. The estimation for the next year after 2007 was 7.75% tax rate and this was observed to be the trend to be followed unless the economy in the whole world is restructured since the people in California must rely on imported and exported goods and services. In this case study, the main objective shall be to show the effects of increased sales tax on the well-being of people in California. The methods that shall be used shall help to come up with resourceful data that shall be analyzed in depth. From the analysis, it shall be clear on the real effects that are caused by increased sales tax. Increase in tax rate has been there in California just as it is with other states in America. Some of the effects may be positive; however, many of them are negative. To the unemployed the situation is worse thus, there must be proposals to look into the issue deeper before it goes beyond recognition. From another research done in the same state to identify the much that is used for consumption by individual persons, according to Kanbur and Spence, it was found out that 65% of the spending per individual was on consumption. It was not, however, constant as it varied with genders and age. There were many reasons that were given for the high spending in consumption and the main one was increased sales ta ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Health, Environmental, and Socio-economic Impact of Organic Food Consumption
The growth in organic food consumption may be driven by the growing interest of consumers towards healthy lifestyle and environmentally-friendly foods. Unlike inorganic foods, foods which are organically grown are propagated and reared without the use of pesticides, antibiotics, chemical fertilizers and other harmful chemicals.
10 Pages(2500 words)Research Paper
Does Being Socially Responsible Impact Corporate Sales Revenue
This research is aimed to analyze the reasons and benefits for implementing corporate social responsibility in the business strategy. Corporate social responsibility is one of the emerging trends in business and has gained a lot of popularity over the last couple of decades.
25 Pages(6250 words)Research Paper
Does Complimenting Costumers Increase Sales
Human beings respond to societal activities by evaluating the effect of the activity to their lives. Marketing entails winning individual’s perception. Techniques applied in marketing intend to influence human psychology to perceive the product as the best out of other product (Pizam, 2010).
6 Pages(1500 words)Research Paper
Replacing the income tax with a national sales tax
However, one of these suggestions that simply refuses to go away and has a great many positive and negative aspects is with regards to replacing the current income tax with a federal sales tax. Many nations around the world currently employ a federally mandated sales tax in lieu of deriving government revenue via other methods; namely import taxes, export tariffs, and/or other alternative methods.
6 Pages(1500 words)Research Paper
Real Consumer Expenditure and Real Disposable Personal Income
After having sorted the data, a graph was generated using Microsoft Excel as shown above. From the graph we can see that the Consumption Expenditures generally increased. What is interesting to note is that the trend was characterized better by an exponential fit rather than by any other curve fits.
4 Pages(1000 words)Research Paper
Sales
Indeed, sales and purchase of items are part and parcel of daily life and efficient processing of the same is vital for good customer relationship and business growth. ‘Sales order captures demands for the firms’ product and services’ (Scott, 2004). The personal
1 Pages(250 words)Research Paper
Personal Income Tax and Revenue Forecasting
The pattern as shown in the past three year’s revenue collection reveals that revenue amount rises each month from the previous month in a large portion of the fiscal year. Also, the revenue collection pattern shows a trend of
5 Pages(1250 words)Research Paper
Personal Impact of Substance Abuse
That is why you started having those panic attacks, you started to skip your work, did not talk to your children for a long period of time and you neglected them more than you neglected your other responsibilities (Benton,
2 Pages(500 words)Research Paper
Government re-investment of tax revenue and the impact on Income inequality
that gathers the expense may not be a piece of focal government, however may be an option outsider authorized to gather tax, which they themselves will utilization. The impact of a change in tariff level of aggregate expense income relies on upon the great being researched, and
4 Pages(1000 words)Research Paper
Consumption expenditure
The following data represents the out put of quarterly distribution (GDP) in the United Kingdom from 2008 to 2014 (Attanasio & Weber, 1994, p.56). The areas of consumption are manufacturing, production, construction and services within the United Kingdom.
4 Pages(1000 words)Coursework
Let us find you another Research Paper on topic Does the General Sales Tax Impact the Personal Consumption Expenditure for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us